Logistics Outsourcing – its Advantages and Drawbacks

Logistics Outsourcing

We are currently undergoing a supply chain shortage. Now there are several reasons why that is the case, lack of workers, high prices of energy, constant COVID-19 outbreaks, etc. But even among all these factors, logistical outsourcing still is an essential factor, minuscule but still a crucial one. Logistics have always been a hassle and nothing new about it. And with the rising expectations of customers, it is has become imperative for businesses to offer timely delivery services. More and more companies are opting for logistics outsourcing for a freight forwarder that can handle their shipping both domestic and international freight logistics. But is that the right way for one to go?




– Personal Effects Entry

– Continuous Bonds




– Warehousing

– Coordination of Customs Examinations




– FDA, USDA Processing

– Letter of Credit




– Customs Entries

– Negotiations Domestic & Intern. Freight




– In-Bond Entry & Re-forwarding

– Specialized Classification




– Application for Importer ID

– General Order Liens Release


Well, just like everything in life, there are certain advantages and drawbacks of using services offered by international freight shipping companies. The best thing one can do is take both into account and make the best decision for their business.

Advantages of Logistic Outsourcing:

  • Economies of Scale

If one has a global operation, it is beneficial for them to use an international freight forwarding service, which will allow you to ship any product across the globe without having to alter any owned infrastructure to do the same. Your business can focus on doing what it does best, manufacturing the product without hassling over the logistical aspect of its delivery.

  • Real-time Inventory Visibility

Another advantage of hiring air freight forwarders is that they use either an ERP system or a cloud-based warehouse management software that will ensure that the inventory of their status is tracked in real-time. Your business can easily integrate your software directly into the warehouse management system and allow you to have up-to-date information about the inventory so that you can better plan your next steps.

  • Expert Documentation Handling

If you are familiar with the logistics of shipping an item from one place to another, you understand the paperwork and regulation one has to go through. Logistic outsourcing ensures that one does not have to haggle with anything of this sort.

Disadvantages of Logistic Outsourcing:

  • Pricing

Now obviously, logistic outsourcing is going to cost you and your business, and suppose you try to circumvent this by partnering up with a low-price vendor. In that case, it is possible that they are either not a legitimate business or possibly are cutting some corners in conducting their operations. Both of them would not be good for your business.

  • A Disconnect Between the Client and the Agent

Suppose one is not careful in their operation. In that case, they could invite a disconnect between themselves (the clients) and the agents, which would certainly not be good and ultimately waste resources.

These are just some of the points that one should keep in mind before deciding on logistics outsourcing. Now, keep everything in mind and take your decision of logistics outsourcing responsibly. After all, it is all about your business.

Not sure which solution fits you business needs?

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